Windhoek: Finance Minister Ericah Shafudah on Tuesday defended the 2026/27 national budget, saying it strikes a careful balance between fiscal consolidation and economic support while safeguarding social spending and promoting sustainable growth.
According to Namibia Press Agency, Shafudah addressed concerns raised by Members of Parliament during the second reading of the Appropriation Bill. She emphasized that the budget does not introduce broad-based tax increases but seeks to maintain revenue stability without placing additional strain on households and businesses. The government aims to protect revenue stability while avoiding extra pressure on households and businesses during economic recovery.
To address these concerns, the government is prioritizing economic diversification and domestic revenue mobilization under the Sixth National Development Plan (NDP6). Shafudah also responded to concerns about public debt levels, stating that debt must be managed prudently and transparently. She highlighted the importance of considering the structure of the debt, which remains largely domestic, rather than focusing solely on the debt-to-GDP ratio.
On development spending, Shafudah noted that allocations extend beyond the N.dollars 6.5 billion reflected in the budget, incorporating grants, loans, and support from institutions such as the National Housing Enterprise and the Road Fund Administration. Addressing concerns about insufficient allocation to agriculture, she explained that the allocations should be viewed holistically, including financing through Agribank and other programs aimed at food security, employment, and economic transformation.
The minister reiterated that the budget prioritizes productive sectors such as infrastructure, agriculture, and youth employment initiatives, while strengthening conditions for private sector-led growth. In February, Shafudah tabled a N.dollars 104 billion budget, comprising an N.dollars 81.3 billion operational allocation, with total public debt standing at N.dollars 174 billion, representing 65.2 percent of GDP as of early 2026.